This was the largest financial operation that had ever been attempted in the United States. Its successful accomplishment at that time was of the greatest possible value in maintaining public confidence, and in uniting the fortunes of the financiers with those of the federal government. It was a tribute to the organizing ability as well as to the patriotism of the founders of the bank association. The capital of the united banks was but $120,000,000, and their coin assets only $63,000,000. Their subscription to $150,000,000 of government securities was thus an act of faith. In practice this agreement did not work out as the bankers had hoped. Chase refused to suspend the sub-treasury act, though authorized to do so by Congress, in order that the banks might pay the government’s creditors in clearing-house certificates; thus the specie began draining away from the banks into the sub-treasuries. The Secretary also began the issue of demand notes on the treasury in considerable amounts. Moreover, the public sales were less than had been anticipated. The bankers were accused of attempting to dictate to the government concerning the conduct of the war. The inevitable result of all this friction was the suspension of specie payments by the New York banks December 30, 1861. With the immense strain upon the government’s resources, the catastrophe of suspension would no doubt have occurred sooner or later; but financial historians believe that had Secretary Chase been more willing to accept the bankers’ propositions, had he coöperated with them more fully, the financing of the Civil War might have wrought less damage in the business world than it did. AGENCIES During the sale of the $150,000,000 bond issue Secretary Chase appointed a large number of agents in every part of the United States to secure the popular subscriptions. Most of these were presidents of local banks. The agents were allowed a commission of one-fifth of one per cent on the first $100,000, and one-eighth on later amounts. One hundred and fifty dollars was allowed for advertising purposes. A traveling agent went through the West, arranging for local agencies and assisting in advertising. It was proposed to allow the country bankers a larger commission with a view to stimulating wide sales, but this proposal the Secretary of the Treasury declined to adopt. The western agents were not very successful in promoting this loan. Jay Cooke, of Philadelphia, sold more than one-fourth of all the bonds issued to the agents; but, in order to do so, spent more than the amount of his commission in advertising.